Parliament to probe HBOS’s collapse today

AN INFLUENTIAL group of MPs and peers will today probe former HBOS heads on why their bank collapsed.

The group failed in the financial crisis and was hastily taken over by Lloyds – which itself then needed a government bailout to cope with the weight of HBOS on its books.

The Parliamentary Commission on Banking Standards (PCBS) will for the first time appoint counsel to cross-examine the witnesses from the banking group, with David Quest from 3 Verulam Buildings advising the Commission.

“This should help us to get to the bottom of what went wrong and why,” said PCBS chairman Andrew Tyrie.

HBOS’ former head of group regulatory risk Paul Moore, CEO international Colin Matthew, and group risk director Jo Dawson will be questioned.

Commission member Lord Turnbull said the hearing will help determine the group’s recommendations on banking standards: “We will be looking at the lessons that can be learned with regard to corporate governance, culture and standards in the banking industry.”

Yesterday John Kay appeared at the PCBS. He told peers and MPs the banking ringfence may not work because it is too difficult to define what is and is not a retail-banking activity.